Five reasons not to start with a BV in the Netherlands

More tax advantages as sole proprietor or partner in a VOF
If an individual or a group of individuals decide to set up a business in the Netherlands (often contemplated by the spouse of an expatriate), we usually advise the start-up that a choice for a limited liability company (hereafter BV) is a lot less tax advantageous than becoming sole proprietor (eenmanszaak) or a (personal) partnership (VOF). Please note that setting up a business, let alone a BV, may in certain cases be impossible from an immigration point of view.
26 nov 2018 Laatst gewijzigd: 16 dec 2018 Kennis Leon van Baal

The five reasons for a sole proprietor (eenmanszaak) or (personal) partnership (VOF)

  1. € 7.280 income profit deduction, if active for at least 1.225 hours per calendar year (zelfstandigenaftrek);
  2. increase of aforementioned deduction for starting entrepreneurs during the first 3 years of € 2.123 (startersaftrek); for R&D activities this deduction is much higher;
  3. starting entrepreneurs may depreciate business assets at will during the first 5 years (willekeurige afschrijving);
  4. additional personal income tax exemption of 14% of profits (MKB-winstvrijstelling);
  5. carry-back term of tax losses is 3 years for private entrepreneurs (BV’s: 1 year).

Tax disadvantages of a BV

A starting BV cannot carry back its initial losses because it does not have any profit history. In case of a sole proprietorship or a partnership the private entrepreneur can carry back its losses to any positive private (wage) income of the past 3 years. Moreover, in a BV a certain market wage is taxed to its main directors/shareholders (sometimes even if the BV is not yet profitable). Based on the above, it is usually better to postpone the BV for a couple of years and to migrate into a BV tax-free when profits exceed say € 150,000.

Still a BV, but with the tax advantages of a sole proprietor

In some cases a BV can otherwise be necessary (limitation of liability, venture capital participation, franchising conditions etc.). In these cases we can investigate if we can combine a BV with a sole proprietorship to achieve the best of both worlds.

Please contact me, if you have any question about your case.



Leon van Baal

Migrantic, Tax & Immigration Lawyers
Specialisme(n): Internationaal belastingrecht, inkomstenbelasting, DGA’s en expats
Neem contact op voor een gratis consult

Fiscaalconsult is het kenniscentrum en online adviesplatform voor financiële of juridische dienstverleners, als ook controllers van ondernemingen die op zoek zijn naar fiscale expertise.

Kanaalpark 157
2321 JW Leiden

Volg ons op

Fiscaal nieuws ontvangen?

Fiscaal nieuws ontvangen?

Ja, stuur mij de nieuwsbrief met fiscale updates en ontwikkelingen. Gegevensverwerking en verzending overeenkomstig de Algemene Verordening Gegevensbescherming (AVG). U ontvangt maximaal 1 nieuwsbrief per week.

Controleer nu uw mailbox

U ontvangt een bericht met instructies om uw e-mailadres te bevestigen.

Fiscaalconsult © 2019. Alle rechten voorbehouden. Privacybeleid en disclaimer

Ready for Online Business